Overview

Question 1

Income and Wealth

Answer 1

Income and wealth are great influences on an individual’s life chances eg chances of owning a home, good health and long life expectancy.

Marxists also maintain that wealth gives individuals power in society.

The New Right maintain that differences in income and wealth are not only inevitable in a capitalist society but also beneficial in motivating people to be more efficient and productive.

Question 2

Income

Answer 2

defined as an inward flow of money. Examples of income include wages, profits, interest, benefits, pension and dividends.

Measured through wages earned, benefits received, dividends made on shares and company profits. Records of the Inland Revenue and companies give details on wages.

Question 3

Wealth

Answer 3

assets that generates income (money) eg house, car, shares, land, art, jewellery.

Measured by surveys based on estimates of individual’s assets. Eg company records, land values, shareholdings, art works. This is how the Sunday Times compiles its Rich list of the UK’s wealthiest citizens.
The Inland Revenue produces estimates on the estates of those who have died.